Results for: Earnout

Former President Donald Trump’s stake in the parent company of his social media platform, Truth Social, is poised to increase by over $1 billion. This windfall is the result of the company’s stock price remaining elevated in recent weeks and comes at a crucial time for Trump, who faces substantial legal expenses and is gearing up his presidential campaign. The additional shares, known as earnout shares, are awarded based on the stock’s performance and will raise Trump’s stake in the company to approximately 65%. Despite market volatility and concerns over short-selling, Truth Social’s share price has remained above the levels set for the earnout, keeping Trump on track to receive the additional shares.

Former President Donald Trump stands to receive an additional 36 million shares of his social media company, Truth Social, worth approximately $1.2 billion. This bonus, known as an earnout, was triggered by Truth Social parent company, Trump Media & Technology Group (TMTG), meeting a performance threshold of trading above $17.50 for 20 trading days. Trump now holds a majority stake of 115 million shares, equivalent to 65% of the company and valued at over $4 billion. However, access to these funds may be limited by a lock-up period of 150 days following the company’s public listing, unless an exemption is granted by the board.